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Conveyancing Demystified: Your Comprehensive Guide to Property Transfers

Posted on December 13, 2023December 10, 2023 by admin

In the world of real estate, the process of buying or selling a property can often seem complex and overwhelming. However, with a solid understanding of conveyancing, you can navigate these transactions with confidence. In this comprehensive guide, we will break down the key components of conveyancing, explain the role of a conveyancer, explore the conveyancing process, discuss the costs involved, and address common challenges that may arise.

Understanding the Basics of Conveyancing Sydney

Conveyancing Sydney is a complex legal process that involves the transfer of property ownership from one party to another. It encompasses a series of steps, documents, and contractual obligations that must be fulfilled to ensure a smooth and lawful transfer.

When engaging in a property transaction, it is essential to understand the importance of conveyancing Sydney. This process plays a crucial role in protecting the rights of both buyers and sellers, ensuring a fair and transparent transaction.

What is Conveyancing?

Conveyancing is a specialized area of law that deals with the transfer of property ownership. It involves the preparation, review, and execution of legal documents, as well as the fulfillment of various legal obligations.

The process typically begins with the negotiation and acceptance of an offer to purchase a property. Once the offer is accepted, the conveyancing process kicks in, ensuring that all legal requirements are met before the property can be officially transferred. You can visit https://wallerlawblog.com/future-proofing-your-legacy-the-power-of-crafting-wills-online/ for the power of crafting wills online.

During conveyancing, a conveyancer or solicitor acts as an intermediary between the buyer and seller. They are responsible for conducting searches, reviewing contracts, and ensuring that all legal obligations are fulfilled.

Importance of Conveyancing in Property Transfers

Conveyancing is of utmost importance in property transfers as it provides a legal framework that protects the rights and interests of all parties involved.

For buyers, conveyancing ensures that the property they are purchasing has a clear title, free from any encumbrances or legal issues. It involves conducting searches to uncover any potential problems, such as outstanding mortgages, liens, or disputes, that may affect the property’s ownership.

For sellers, conveyancing ensures that the property is transferred to the buyer in a lawful manner. It involves preparing and reviewing legal documents, such as the contract of sale and transfer of title, to ensure that all necessary provisions are included and that the seller’s interests are protected.

Additionally, conveyancing helps to establish a fair and transparent transaction process. It ensures that all parties are aware of their rights and obligations, and that the terms of the transaction are clearly defined and agreed upon.

By adhering to conveyancing regulations and procedures, buyers and sellers can have peace of mind knowing that their property transaction is being handled in a professional and legally compliant manner.

Overall, conveyancing is a vital aspect of property transfers, providing the necessary legal framework and protection for both buyers and sellers. It ensures that the transfer of property ownership is carried out smoothly, efficiently, and in accordance with the law.

The Role of a Conveyancer

A conveyancer plays a crucial role in the property buying and selling process. They are highly skilled professionals who specialize in property law and are responsible for managing the conveyancing process from start to finish. Whether you are buying or selling a property, a conveyancer will be your trusted guide throughout the entire transaction.

Duties and Responsibilities of a Conveyancer

One of the primary duties of a conveyancer is to review contracts. They carefully examine the terms and conditions of the contract to ensure that everything is fair and in accordance with the law. This includes checking for any hidden clauses or potential issues that may arise during the transaction.

In addition to reviewing contracts, conveyancers also conduct property searches. This involves investigating the property’s title, boundaries, and any potential legal restrictions or obligations. By conducting thorough searches, conveyancers ensure that there are no surprises or hidden problems that could affect the property’s value or your ownership rights.

Preparing legal documents is another crucial responsibility of a conveyancer. They draft and review various legal documents, such as the transfer of ownership, mortgage agreements, and any other necessary paperwork. These documents need to be accurate and legally binding to protect both the buyer and the seller.

Furthermore, conveyancers play a vital role in facilitating the transfer of funds. They ensure that all financial transactions are handled securely and efficiently. This includes coordinating with banks, mortgage lenders, and other parties involved in the transaction to ensure a smooth transfer of funds.

Choosing the Right Conveyancer for Your Needs

When it comes to selecting a conveyancer, it is essential to consider several factors. Firstly, you should look for a conveyancer who specializes in the type of property transaction you are undertaking. Whether it’s residential, commercial, or industrial property, finding a conveyancer with relevant expertise is crucial.

Experience is another crucial factor to consider. Look for conveyancers who have a proven track record of successful transactions. An experienced conveyancer will have the necessary knowledge and skills to handle any challenges that may arise during the conveyancing process.

Reputation is also important when choosing a conveyancer. Seek recommendations from friends, family, or professionals in the real estate industry. Online reviews and testimonials can also provide valuable insights into a conveyancer’s reputation and the quality of their services.

Effective communication is key to a smooth conveyancing experience. Look for a conveyancer who is responsive, proactive, and keeps you informed throughout the process. Clear and open communication ensures that you are always aware of the progress and any potential issues that may arise.

In conclusion, a conveyancer plays a vital role in property transactions. Their duties include reviewing contracts, conducting property searches, preparing legal documents, and facilitating the transfer of funds. By choosing the right conveyancer, you can ensure a smooth and successful conveyancing experience.

The Conveyancing Process Explained

Buying or selling a property can be a complex and time-consuming process. One crucial aspect of this process is conveyancing, which involves the legal transfer of property ownership from the seller to the buyer. Understanding the conveyancing process is essential for both buyers and sellers to ensure a smooth and successful transaction.

Pre-contractual Stage

The pre-contractual stage is the initial phase of the conveyancing process. During this stage, various important tasks need to be completed to lay the foundation for a successful transaction. One of the key tasks is negotiating the terms of the contract. This involves discussing and agreeing upon the purchase price, any special conditions, and the expected completion date.

In addition to negotiating the contract terms, property inspections and surveys are conducted to assess the condition of the property. These inspections help identify any potential issues or defects that may need to be addressed before proceeding with the transaction.

Another critical aspect of the pre-contractual stage is ensuring the buyer’s finances are in order. The conveyancer works closely with the buyer to verify their ability to finance the purchase. This may involve reviewing bank statements, obtaining mortgage offers, and confirming the availability of funds for the deposit and other associated costs.

Completing these tasks diligently is crucial to minimize potential issues that may arise later in the conveyancing process. It is essential to have a thorough understanding of the property’s condition and the financial capabilities of the buyer to avoid any surprises or complications down the line.

Contractual Stage

Once the pre-contractual stage is completed, the conveyancing process moves into the contractual stage. This is where the legal aspects of the transaction come into play. The key event during this stage is the exchange of contracts between the buyer and seller.

When the contracts are exchanged, both parties become legally bound to the transaction. The buyer typically pays a deposit at this stage, which is usually a percentage of the purchase price. The deposit serves as a commitment from the buyer and provides some financial security to the seller.

During the contractual stage, the conveyancer plays a crucial role in ensuring that all legal requirements are met. They review the contract thoroughly, making sure it accurately reflects the agreed-upon terms and conditions. If any amendments or negotiations are necessary, the conveyancer guides their client through the process, ensuring their best interests are protected.

Additionally, the conveyancer may conduct various searches during this stage to uncover any potential issues that may affect the property’s value or the buyer’s ability to use it as intended. These searches can include checking for planning permissions, environmental concerns, or any other relevant factors that may impact the property.

Post-contractual Stage

Once the contracts are exchanged, the conveyancing process enters the post-contractual stage. This stage focuses on finalizing the transaction and ensuring a smooth transfer of ownership.

One of the key aspects of the post-contractual stage is finalizing the financial aspects of the transaction. The conveyancer works closely with the buyer, seller, and their respective financial institutions to ensure all necessary funds are available for the completion of the purchase. This involves coordinating the payment of the remaining balance, including any outstanding fees or taxes.

In addition to the financial aspects, the conveyancer also arranges for the transfer of the property’s ownership. This includes preparing the necessary documentation, such as the transfer deed, and ensuring it is executed correctly. They also handle the registration of the property transfer with the relevant authorities to ensure the buyer’s ownership rights are legally recognized.

During the post-contractual stage, the conveyancer conducts final checks to ensure all necessary steps have been taken and all legal requirements have been met. This includes verifying that any outstanding issues identified during the pre-contractual stage have been resolved and that the property is ready for the buyer to take possession.

Overall, the conveyancing process is a comprehensive and intricate series of tasks that require careful attention to detail and legal expertise. By understanding each stage of the process, buyers and sellers can navigate the complexities with confidence, ensuring a successful property transaction.

Costs Involved in Conveyancing

Conveyancer’s Fees

Conveyancers charge fees for their services, which can vary depending on the complexity of the transaction and the conveyancer’s experience. It is crucial to discuss fees upfront and ensure you understand the services included.

Disbursements: What Are They?

Disbursements are additional costs incurred during the conveyancing process, such as search fees, registration fees, and taxes. These expenses are typically paid by the buyer and can vary based on location and specific circumstances.

Common Challenges in Conveyancing

Dealing with Delays in the Process

Delays can occur at various stages of the conveyancing process, often due to external factors beyond the control of buyers or sellers. A skilled conveyancer can help minimize delays by proactively addressing any issues and ensuring all necessary paperwork is completed promptly.

Overcoming Legal Issues

Occasionally, legal issues may arise during conveyancing, such as disputes over property boundaries or planning permission complications. In such cases, it is crucial to work closely with a conveyancer who can provide expert guidance and resolve these issues in a timely manner.

By understanding the basics of conveyancing, the role of a conveyancer, the conveyancing process, the associated costs, and common challenges, you can approach property transfers with confidence and ensure a smooth and successful transaction. Remember to choose a reliable and experienced conveyancer who will guide you through the process and protect your interests every step of the way.

Future-Proofing Your Legacy: The Power of Crafting Wills Online

Posted on December 13, 2023December 10, 2023 by admin

In today’s digital age, online services have revolutionized various aspects of our lives. From shopping and communication to banking and entertainment, the internet has made many tasks more convenient and efficient. As technology continues to advance, it has also extended its reach into the realm of estate planning, with the emergence of online wills. Understanding the importance of wills online and their benefits can help you future-proof your legacy and ensure your wishes are carried out seamlessly.

Understanding the Importance of Online Wills

Estate planning has come a long way since the traditional paper-based approach. The evolution of estate planning has witnessed the rise of wills online Australia, offering individuals a convenient and accessible way to protect their assets and determine the distribution of their estate.

As more people recognize the ease and efficiency of online transactions, it is no surprise that online wills have gained popularity. Not only do they simplify the estate planning process, but they also offer a range of advantages that traditional methods may not provide.

The Evolution of Estate Planning

For centuries, estate planning involved stacks of paperwork, countless meetings with lawyers, and the need to constantly update physical documents. However, technological advancements have transformed this laborious process into an online experience that is efficient and secure. Online wills provide a streamlined solution that allows individuals to create and modify their estate plans with ease.

With the advent of online wills, individuals no longer have to endure the hassle of scheduling multiple appointments with lawyers. They can now conveniently create their wills from the comfort of their own homes, saving both time and money. This accessibility has revolutionized the estate planning landscape, making it more inclusive and empowering individuals to take control of their financial future.

Moreover, the digital nature of online wills ensures that they can be easily stored and accessed. Unlike traditional paper wills that can be lost or damaged, online wills can be securely stored in the cloud, providing peace of mind that the document will not be misplaced or destroyed. This level of security and convenience is a significant advantage that online wills offer. You can visit https://wallerlawblog.com/conveyancing-demystified-your-comprehensive-guide-to-property-transfers/ for a comprehensive guide to property transfers.

Why Online Wills are Gaining Popularity

One of the main reasons online wills are gaining popularity is their accessibility. With just a few clicks, individuals can create their wills from the comfort of their own homes. This eliminates the need for numerous appointments and potentially saves time and money.

Furthermore, online wills offer a level of flexibility that traditional wills may not provide. They allow for easy updates and revisions, ensuring that your will is always up to date, even if your circumstances change. Life is unpredictable, and having the ability to modify your will as needed provides a sense of control and adaptability.

In addition, online wills often come with built-in guidance and prompts that help individuals navigate the estate planning process. These resources can be invaluable, especially for those who may be unfamiliar with legal jargon or unsure about the specific details to include in their wills. The user-friendly interfaces of online will platforms make the entire process more approachable and less intimidating.

Another advantage of online wills is the ability to easily share and distribute the document to relevant parties. With traditional wills, physical copies need to be distributed to various individuals, which can be time-consuming and prone to errors. Online wills, on the other hand, can be securely shared with designated beneficiaries and executors with just a few clicks, ensuring that the right people have access to the necessary information.

Lastly, online wills often provide additional resources and support beyond the creation of the document itself. Many platforms offer educational materials, FAQs, and customer support to assist individuals throughout the entire estate planning process. This comprehensive approach ensures that individuals have the necessary tools and guidance to make informed decisions about their assets and estate.

The Process of Crafting an Online Will

Creating an online will is a straightforward process that involves several key elements. Understanding these elements will help you craft a valid online will that accurately reflects your wishes.

When it comes to planning for the future, one of the most important documents you can create is a will. A will ensures that your assets are distributed according to your wishes and provides peace of mind for you and your loved ones. In today’s digital age, online wills have become increasingly popular due to their convenience and accessibility.

When crafting your online will, you must ensure that it includes essential elements, such as naming an executor, clearly identifying your beneficiaries, and specifying how your assets should be distributed. By including these crucial components, you can ensure that your will is legally binding and will be honored after your passing.

One of the key elements of an online will is the appointment of an executor. An executor is responsible for carrying out the instructions outlined in your will and ensuring that your wishes are fulfilled. It is important to choose someone you trust and who has the necessary skills to handle the responsibilities of an executor.

In addition to naming an executor, it is crucial to clearly identify your beneficiaries in your online will. Beneficiaries are the individuals or organizations who will receive your assets after your passing. By clearly stating who your beneficiaries are, you can avoid any confusion or disputes that may arise.

Another important aspect of an online will is specifying how your assets should be distributed. This includes outlining how your property, finances, and personal belongings should be divided among your beneficiaries. It is important to be specific and detailed in this section to avoid any ambiguity or misinterpretation.

The Role of Digital Witnesses

Traditionally, wills required physical witnesses to confirm their validity. However, online wills have adapted to the digital age by introducing digital witnesses. These witnesses, who can be friends, family members, or professionals, play a crucial role in verifying the authenticity and legality of your online will.

When selecting digital witnesses, it is important to choose individuals who are familiar with the process of creating an online will and who can attest to your mental capacity and intent. These witnesses will need to sign a declaration stating that they witnessed the creation of your online will and that you were of sound mind at the time.

One advantage of digital witnesses is that they can be located anywhere in the world, making it easier to find individuals who are willing and able to fulfill this role. Additionally, digital witnesses can provide an extra layer of security and credibility to your online will, as their signatures can be easily verified.

It is important to note that the requirements for digital witnesses may vary depending on your jurisdiction. It is recommended to consult with a legal professional to ensure that your online will meets all the necessary legal requirements.

In conclusion, crafting an online will involves several key elements, including naming an executor, identifying beneficiaries, and specifying asset distribution. Digital witnesses play a crucial role in verifying the authenticity and legality of your online will. By understanding these elements and seeking professional advice, you can create a valid online will that accurately reflects your wishes and provides peace of mind for you and your loved ones.

Advantages of Crafting Wills Online

There are several advantages to crafting wills online that make it an appealing option for individuals seeking to protect their assets and secure their legacy.

When it comes to estate planning, convenience and flexibility are key factors to consider. Crafting an online will offers unparalleled convenience and flexibility. Online platforms provide easy-to-use templates and step-by-step guidance, ensuring that you don’t overlook any crucial elements. Whether you are a tech-savvy individual or someone who is not as familiar with technology, these platforms are designed to be user-friendly and accessible to all.

One of the greatest advantages of crafting an online will is the ability to access and update it from anywhere at any time. Gone are the days of scheduling multiple appointments with lawyers and having to physically go to their offices. With just a few clicks, you can access your will from the comfort of your own home or even while on the go. This level of convenience allows you to make necessary changes or updates to your will as your circumstances evolve.

Another significant advantage of online wills is their cost-effectiveness. Compared to traditional methods, online wills often come at a fraction of the cost. By eliminating the need for multiple appointments and unnecessary paperwork, online wills not only save you time but also money. This cost-effectiveness makes estate planning accessible to a wider range of individuals, ensuring that everyone has the opportunity to protect their assets and secure their legacy.

Furthermore, crafting a will online allows you to take control of the process. You can work at your own pace and take the time to understand each step thoroughly. This level of control can provide peace of mind, knowing that you have taken the necessary steps to protect your loved ones and ensure that your wishes are carried out.

In addition to convenience, flexibility, and cost-effectiveness, online wills also offer a higher level of privacy. With traditional methods, there is a chance that your personal information may be exposed to multiple individuals involved in the process. However, with online wills, you have the option to keep your information secure and confidential.

Ultimately, crafting wills online provides individuals with a modern and efficient approach to estate planning. The convenience, flexibility, cost-effectiveness, control, and privacy that online wills offer make them an attractive option for those seeking to protect their assets and secure their legacy.

Potential Pitfalls and How to Avoid Them

While online wills offer numerous advantages, it is crucial to be aware of potential pitfalls and take the necessary precautions to ensure the legality and effectiveness of your online will.

Ensuring the Legality of Your Online Will

To ensure the legality of your online will, it is important to adhere to the specific legal requirements in your jurisdiction. Familiarize yourself with the laws surrounding online wills and consult with legal professionals if needed to ensure that your will meets all necessary criteria.

Avoiding Common Mistakes in Online Will Creation

When creating your online will, it is essential to be thorough and accurate. Common mistakes, such as improper beneficiary designations or incomplete asset lists, can lead to challenges and disputes. Double-check all details before finalizing your online will to avoid any potential complications.

The Future of Online Wills and Estate Planning

As technology continues to advance, online wills and estate planning are likely to undergo further transformations.

Technological Advancements and Their Impact

The future of online wills will undoubtedly see the integration of emerging technologies. Features such as biometric authentication and blockchain technology may enhance security and ensure the authenticity of online wills.

The Role of AI and Automation in Online Wills

Artificial intelligence (AI) and automation have the potential to revolutionize online wills. AI-powered platforms can provide more personalized guidance and suggestions, ensuring that your will accurately reflects your wishes. Furthermore, automation can simplify the administrative tasks associated with estate planning, reducing the burden on individuals and professionals alike.In conclusion, online wills offer a powerful tool for individuals seeking to future-proof their legacy. By understanding their importance and the benefits they provide, you can make informed decisions about your estate planning. With the convenience, flexibility, and cost-effectiveness they offer, online wills have become an attractive option that simplifies the process while ensuring your wishes are carried out. However, it is essential to be aware of potential pitfalls and take necessary precautions to ensure the legality and effectiveness of your online will. As technology continues to evolve, the future of online wills and estate planning holds exciting possibilities, paving the way for even more efficient and secure solutions. So don’t wait, start crafting your online will today and provide peace of mind for yourself and your loved ones.

FDA and FTC collaborate on CBD warning letters

Posted on April 18, 2019December 10, 2023 by admin

Earlier this month, outgoing Food and Drug Administration (FDA) commissioner Scott Gottlieb made a number of statements relating to the FDA’s position on cannabidiol (CBD) used in consumer products, including the announcement of a working group and public hearing on the topic to be held on May 31.

Specifically, Commissioner Gottlieb’s statements referenced three warning letters [Advanced Spine and Pain LLC (d/b/a Relievus), Nutra Pure LLC and PotNetwork Holdings Inc.] that the FDA issued to CBD companies in conjunction with the Federal Trade Commission (FTC). The letters allege that the companies used their online platforms to make unfounded, egregious claims about their products’ ability to limit, treat or cure cancer, neurodegenerative conditions, autoimmune diseases, opioid use disorder and other serious diseases, without sufficient evidence and the legally required FDA approval.

Some examples of conditional, yet unsubstantiated claims that the FDA focused on as deceptive or misleading include:

“CBD also decreased human glioma cell growth and invasion, thus suggesting a possible role of CBD as an antitumor agent.”
“For Alzheimer’s patients, CBD is one treatment option that is slowing the progression of that disease.”
“Cannabidiol May be Effective for Treating Substance Use Disorders.”
“CBD reduced the rewarding effects of morphine and reduced drug seeking of heroin.”
“CBD may be used to avoid or reduce withdrawal symptoms.”

We believe the first time in history that the FDA and the FTC have collaborated to issue warning letters, perhaps to underline the agencies’ intention to take action against CBD companies making unsubstantiated health-related claims in an effort to sell products that have not been previously approved by the FDA, even ahead of formal guidance on the topic being issued by the FDA.

More to read: Has the Supreme Court Opened a Door for New Challenges to State Corporate Practice of Medicine Laws?

The complete guide to paying tipped employees in Tennessee

Posted on March 7, 2019December 10, 2023 by admin

If your restaurant, bar, club or hotel employs tipped staff, this post is for you. Guest blogger and employment law guru Casey Duhart gives the lowdown on avoiding seriously expensive lawsuits for wage and hour violations.

Casey asks: “Why are tipped employees bringing so many wage and hour lawsuits these days?” Casey’s answer is simple: “Too many employers are not using the tip credit correctly.”

Read Casey’s advice for avoiding tip credit pitfalls.

What is a Tipped Employee?

A tipped employee is an employee who customarily and regularly receives more than $30 per month in tips. An employee does not meet the “customarily and regularly” requirement if the employee only receives $30 or more monthly during the holidays or special events.

What is the Fair Labor Standards Act?

Wage-related rules for tipped employees who receive money from customers are governed by the Fair Labor Standards Act (“FLSA”).

What is the Tip Credit?

Under the FLSA, employers can claim a tip credit toward the federal minimum wage. This credit means that an employer can pay tipped employees a lower wage than the federal minimum wage.

The current federal minimum wage – and the minimum wage in all of Tennessee – is $7.25 per hour.

An employer can claim a maximum tip credit of $5.12 per hour and pay tipped employees $2.13 per hour.

Notice Requirement

Before you can claim a tip credit, you must provide the following information to each tipped employee:

the amount of cash wages the employer is paying a tipped employee. The minimum wage for tipped employees is $2.13 per hour;
the additional amount claimed by the employer as a tip credit, which cannot exceed $5.12 (the difference between the minimum required cash wage of $2.13 and the current minimum wage of $7.25);
that the tip credit claimed by the employer cannot exceed the amount of tips actually received by the tipped employee;
that all tips received by the tipped employee are to be retained by the employee except for a valid tip pooling arrangement limited to employees who customarily and regularly receive tips; and
that the tip credit will not apply to any tipped employee unless the employee has been informed of these tip credit provisions.

If you fail to provide this information to a tipped employee, you will be required to pay the tipped employee at least $7.25 per hour in wages and allow the tipped employee to keep all the tips.

Here is a simple rule: provide this information in writing to all employees, when they are hired.

Overtime Compensation

If you claim a tip credit, overtime is calculated on the full minimum wage of $7.25; not the lower direct (or cash) wage payment of $2.13.

Example: A tipped employee works 60 hours in a workweek.

Step 1: Use the minimum wage to calculate the overtime rate.

$7.25 x 1.5 = $10.88

Step 2: Subtract the tip credit from the overtime rate to achieve the adjusted rate and multiply by overtime hours worked that week.

$10.88 – $5.12 = $5.76

$5.76 x 20 overtime hours = $115.20

Step 3: Add the employee’s straight pay plus the overtime pay to calculate the pay for that week.

40 hours x $2.13 = $85.20 straight time

$85.20 + $115.20 = $200.40

Uniforms

You cannot require a tipped employee to pay for their uniform out-of-pocket if the cost would reduce the tipped employee’s wages below the minimum wage of $7.25 per hour.

Example: If a tipped employee is paid $2.13 per hour and worked 40 hours in a workweek and received $205 in tips (total compensation of $290.20) charging the employee $15 for a uniform shirt would cause the employee’s wages to fall below the minimum wage for that week.

Keep in mind that “street wear” such as ordinary shirts and/or pants of a standard style is not considered a uniform. As a rule of thumb, the more specific your requirements for employee clothing, the more likely it is that it will be considered a uniform.

You may be financially responsible for the cost of cleaning the uniform if the uniform requires daily washing, special commercial laundering, ironing or other special treatment (such as dry cleaning).

Tip Pooling

The FLSA requires that tipped employees keep their tips. However, you can require tipped employees to share their tips with other employees who customarily and regularly receive tips. People who don’t normally receive tips, such as cooks, dishwashers, janitors, and chefs, cannot be included in the tip pool.

Have a clear tip pooling policy. Although not required by law, you should ask all tipped employees participating in the tip pool to sign a tip pooling agreement.

Service Charges

A charge for service, for example, 20 percent of a bill, is not a tip! A compulsory service charge is part of the employer’s gross receipts, which means that the employer may choose to retain the gain or distribute all or part of it to employees. Therefore, service charges are not counted as tips. Unlike tips, you must collect and pay sales tax on service charges.

Credit Card Fees

Customers who pay by credit card usually write in their tip. However, with each credit card transaction, you are charged a transaction fee by the credit card company. You are allowed to pay the employee the tip, less that transaction fee. For example, where a credit card company charges an employer 3 percent on all sales charged to its credit service, the employer may pay the tipped employee 97 percent of the tips without violating the FLSA. However, the charge on the tip may not reduce the employee’s wage below the required minimum wage.

Walkouts

Deducting a tipped employee’s pay for walk-outs or cash register shortages is illegal if the deduction reduces the employee’s wages below the minimum wage.

Not Making up the Difference

An employer must make up the difference if a tipped employee’s wages does not reach the minimum wage when you add their tips to their cash wages. Double and triple check that tipped employees make at least minimum wage.

Example: If a tipped employee is paid $2.13 per hour and worked 40 hours in a workweek and received $75 in tips (total compensation of $160.20) the employee’s compensation is below the minimum wage ($7.25 x 40 hrs = $290) and the employer must make up the difference of $129.80.

Record and Pay for all Time Worked

Be sure that you have a timekeeping and payroll system that captures all time worked by tipped employees and all tips received. Even a simple sign-in sheet or iPad app is better than nothing.

Be Diligent

Restaurants and hospitality employers are easy targets for wage and hour lawsuits and audits. Because the tip credit laws can be tricky, make sure you are diligent about compliance and accurate record keeping. If in doubt, contact an attorney that practices employment law to help evaluate your tip credit policies and procedures.

Tennessee becomes one of first states to approve blockchain smart contracts

Posted on March 29, 2018December 10, 2023 by admin

Tennessee has become one of the first states in the country to approve the use of “smart contracts,” which are made through the use of blockchain technology.

In essence, the law gives blockchain contracts and electronic signatures submitted through blockchain as having equal standing to more traditional forms of contracts.

The Chamberlains officially defines “blockchain technology” as “distributed ledger technology that uses a distributed, decentralized, shared, and replicated ledger” to record transactions.

By design, blockchain permanently records all transactions and is unalterable. Blockchain transactions replicate across millions of computers, making it virtually impossible to alter the transaction. In these deals, both parties have the assurance that the transaction has been permanently recorded without the need for a traditional intermediary, such as a bank or other institution.

While blockchain is currently the method for verifying transactions using the popular cryptocurrency Bitcoin, the technology has the capabilities to be used in an endless variety of transactions across a multitude of industries.

The law, which was submitted as Senate Bill 1662, was unanimously passed in the state House and Senate and was signed by Gov. Bill Haslam in late March. The bill officially amended the Tennessee Code Annotated, Title 47, Chapter 10.

Tennessee joins a handful of other states, including Wyoming, Nebraska, Florida, New York and Colorado, that have officially recognized blockchain technology as a means of verifying contracts.

While noteworthy, it just one step for a technology that remains in its infancy.

The state should next turn its attention to the Uniform Regulation of Virtual-Currency Businesses Act, which was recently proposed by the Uniform Law Commission.

Waller’s Charles A. Trost, who has previously served as commissioner of the Tennessee Department of Revenue, is a member of the 19-person committee that created the draft legislation.

This set of rules creates a “statutory framework for regulating companies engaged in virtual-currency business activity.”

The uniform legislation was drafted by a coalition of leaders in virtual currency, banking, business, government officials, according to the ULC. Thus far, state legislatures in Connecticut, Hawaii, and Nebraska have introduced the legislation.

According to the ULC, there are four benefits for the proposed legislation:

— it specifically regulates companies that assume “control” of a client’s virtual currency.

— It creates an “on-ramp” for some smaller companies to operate without a license, which allows for room for innovation and experimentation, the ULC contends.

— It assures consumers of the safety and security of virtual currency. It would require all virtual-currency businesses to create specific policies and compliance programs to guard against fraud, cyber threats, and terrorist activity.

— It allows for reciprocal licensing, which creates better coordination among states, while also reducing hassles for member companies.

More to read: The Power of Crafting Wills Online

Has the Supreme Court Opened a Door for New Challenges to State Corporate Practice of Medicine Laws?

Posted on March 13, 2015December 10, 2023 by admin

It’s not surprising that Supreme Court watchers in the healthcare industry have focused primarily on King v. Burwell and its potential impact on the Affordable Care Act. However, the Court’s recent 6-3 decision in North Carolina Board of Dental Examiners v. Federal Trade Commission is also noteworthy for its possible effects on the way state boards or agencies license and regulate dental and medical practitioners.

The North Carolina case centers on teeth-whitening services being offered in the state by non-dentists. In response to complaints by licensed dentists, the Board of Dental Examiners issued cease-and-desist letters alleging that teeth whitening constituted the unlicensed practice of dentistry. Then, the Federal Trade Commission got involved. The FTC took the position that the Board’s actions violated federal antitrust laws and a lower court agreed. The Board appealed the ruling on the grounds of state-action immunity meaning that the Board was insulated from antitrust lawsuits by virtue of being a state agency. The Supreme Court affirmed the lower court ruling.

Writing for the majority, Justice Kennedy concluded that “[t] he Sherman Act protects competition while also respecting federalism. It does not authorize the States to abandon markets to the unsupervised control of active market participants, whether trade associations or hybrid agencies. If a State wants to rely on active market participants as regulators, it must provide active supervision if state-action immunity … is to be invoked.”

Unlike most states (in which dental board members are appointed by the state’s Governor, North Carolina’s dental board is popularly elected by the dentists in the state. As the American Dental Association noted after the decision, the case focused largely “on the fact that the dentist members of the North Carolina board are elected by other dentists — in accordance with state statute.” Considered “active market participants” by the Court, these dentists require active supervision by the states in which they operate. The result, according to the ADA’s general counsel J. Craig Busey, is that professional boards across the country are now left in a quandary, “with no explanation as to what level of active supervision is necessary to invoke immunity for each board.” Busey added that “boards are likely to be extremely reluctant to take actions that may subject them to legal exposure, and individual members may be justifiably concerned about possible liability.”

What will be the impact of this case on the regulation of dental and medical practice management companies by state dental and medical boards? We’ll leave it to others to analyze the antitrust aspects of the decision. Our focus is on what the decision might mean for dental and medical groups moving forward and, in particular, Dental Support Organizations (DSOs) and Management Services Organizations (MSOs).

The ruling might inhibit the North Carolina Dental Board’s efforts to further regulate dental support organizations in the state. Back in 2012, legislation was proposed in the North Carolina House of Representatives that would have given the Dental Board significant new regulatory and oversight authority over DSOs operating in the state. Commenting on the proposed legislation, the FTC expressed concerns that the bill might “deny consumers of dental services the benefits of competition spurred by the efficiencies that DSOs can offer, including the potential for lower prices, improved access to care, and greater choice.” After the Supreme Court’s recent ruling, the North Carolina Dental Board might be reluctant to initiate a third confrontation with the FTC.
Other states could take the Supreme Court decision as a warning with respect to new DSO and MSO regulations. North Carolina isn’t the only state that tried to increase its regulation of DSOs. In 2014, the Texas State Dental Board’s attempt to impose new fees and regulations on DSOs was met with strong resistance and was ultimately defeated. The Supreme Court’s North Carolina decision represents another weapon that DSOs and MSOs can use to defend their business models, particularly as dental boards in New Jersey, Indiana, Washington and other states consider new regulations.
There may be new opportunities for companies to offer teeth whitening services without state board restrictions. The North Carolina decision would seem to create new opportunities for companies other than dental practices to offer teeth whitening services, but this will vary on a state-by-state basis. A number of states have begun specifically regulating teeth whitening, and companies could face similar – and costly – court battles in those states.

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